IEO is not bad, it's just that there are too many exchanges that make lunchpad. so investors are confused about which exchange they want to use. especially now that new projects prefer IEO, to collect development funds rather than ICO. too many exchanges and new projects. this is the problem now, because only IEO in the large exchange has a chance of success.
If you want to go for the larger exchanges, then be ready to pay huge amounts as listing fee. Exchanges such as Binance and Huobi are asking insane amounts as listing fees. From what I have heard, Huobi is charging a few million USD per listing and the fee charged by Binance is in the same range. And the promoters will be losing this amount if the fundraising ends in failure.
Binance doesn't require any listing fees but rather they do choose up the coin according on a strict criteria
https://www.binance.com/en/support/articles/115000822512Listing out on big and top exchangers wont really be that easy- if you were not able to pay up millions then you do need for your coins to be worthy to get listed.
Ieo are not bad at all, intact it is much safer way to invest in a project than ico imo, with ieo you are sure your investment is protected and a guaranteed exchange for trading, unlike some ico that you stand the chance to lose your money if the team decided to be greedy, also can take a very long time before listing on an exchange.
This is the main reason or difference between IEO and ICO that's why majority of investors would see IEO is more better yet exchange listing do directly happens.